This week, as Wall Street reeled from the GameStop event, the Biden Administration appointed insider Janet Yellen as Treasury Sectretary.
However, Yellen’s financial disclosures reveal over 60 speeches to financial firms, and items 25, 29, and 49 on the list shows her receiving a sum of $810,000 from Citadel in speaking fees.
The House should subpoena Janet Yellen and find out if there was pressure coming from the Biden Admin to protect their associates on Wall Street.
Citadel is the owner of Robinhood.
Reporter: Are there any plans to recuse herself from advising the President on GameStop and Robinhood situation?
Press Secretary Psaki: ‘No and she’s an expert and deserves that money.’
Citadel is an investor in Melvin Capital, which shorted GME and got flattened by redditors. Citadel is also Robinhood’s biggest customer. They buy your user data from Robinhood and use it to profit from your trades before you make them
Following a Reddit-induced skyrocket in the price of GameStop, a company heavily shorted by Melvin Capital Management, trading platforms including RobinHood have started to ban trading of the security. The move will likely lower the price of the stock and, perhaps, help rectify Melvin Capital’s immense losses.
The move has been widely viewed as protecting Wall Street hedge funds, whom Yellen has made millions speaking from, while “selling out” the little guy.
Citadel recently funneled billions into Melvin Capital Management according to The Wall Street Journal:
Citadel LLC and Point72 Asset Management are investing $2.75 billion in hedge fund Melvin Capital Management, an emergency influx of cash that is expected to stabilize what has been one of the top performing funds on Wall Street. […] Citadel and its partners are investing $2 billion and Point72, which already had more than $1 billion invested in Melvin as of 2019, is investing an additional $750 million, the funds said Monday. As part of the deal, Citadel, its partners and Point72 are receiving non-controlling revenue shares in the firm that eventually expire, a person familiar with the deal said.
What’s more, Citadel has a close financial relationship with RobinHood, as the trading platform “receives payment from Citadel Execution Services for directing equity order flow”:
Note: While we are worried about manipulations of markets, perhaps look into the almost $7.5 trillion sitting on the Fed’s balance sheet and the forever zero interest rates. Thanks to much work by Ms. Yellen as chairman of the Federal Reserve.